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Buying and selling a home is not as easy as it sounds, but it can be done. One way to do so quickly is to take part in a short sale, which is a very valuable transaction in real estate.
A lot of people confuse a short sale, with a foreclosure sale, but they are very different.
In this article, we’re going to tell you what you need to know about a short sale in real estate.
A short sale is one in which a motivated seller, typically someone in financial trouble, sells their home for less than what it’s worth.
Because of the complexities involved, a short sale will typically involve a lender who approves the transaction. Another difference from a traditional real estate transaction is that in a short sale, the seller doesn’t pay for closing costs. Those fees are split between the lender and buyer.
As you can imagine, a short sale is a good deal for the buyer, but can be a terrible thing for the seller, at least in one sense.
A short sale is good for the buyer because they get to buy a home for far cheaper than it normally would be listed for.
On the other hand, for the seller, a short sale may get them out of a mortgage, but their credit will take a major hit in the process.The seller will typically look to do a short sale of a home as a way to avoid a foreclosure, which would hurt their credit even more.
You may be weighing whether buying a short sale house is a good idea. While the price will likely be reduced, you should know that there may be some issues with the home that require quite a lot of time or money. For that reason, short sales are usually purchased by seasoned real estate investors, who have the time and money to invest. Let’s talk about what’s required.
The time you be spent not only repairing the home and getting it into shape for someone to live there, but securing the necessary paperwork and permits from the appropriate government agencies.
You can bet that it’s going to also cost you a pretty penny to turn the home into something that attracts a buyer. Let’s just not hope that there’s no foundation or roof problems, which will be quite expensive.
You can get a list of short sales in your area by reaching out to your local Realtor, who would be familiar with the process as well.
You can also find short sales on the following real estate websites:
Real estate prices are on the rise around the state, but you can find a good deal if you’re patient.
Contrary to its name, a short sale may take several months before it is finally approved. You can use that time to secure a contractor to do some of the jobs that need to be completed once the home becomes yours.
You may need a plumber, electrician and carpenter for starters.
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